📊 UNH Key Takeaways
Is Unitedhealth Group Inc. (UNH) a Good Investment?
UnitedHealth demonstrates strong top-line expansion at 11.8%, but this is severely undermined by a 16.3% net income decline, revealing critical margin compression across the business. While positive free cash flow ($8.1B) and manageable leverage (9.4x interest coverage) provide some stability, deteriorating profitability, weak returns (6.0% ROE, 2.0% ROA), and working capital stress (0.80x current ratio) indicate operational challenges that must be resolved.
UnitedHealth shows strong scale, double-digit revenue growth, and solid free cash flow generation, which support the durability of its franchise. However, declining net income and EPS, thin margins, and sub-1.0 liquidity ratios suggest growth quality has weakened and near-term financial flexibility should be watched more closely.
Unitedhealth Group Inc. Key Strengths (UNH)
- Strong revenue growth of 11.8% year-over-year demonstrates solid market demand in healthcare services
- Robust free cash flow generation of $8.1B and manageable debt/equity ratio of 0.69x provides financial flexibility
- Strong interest coverage ratio of 9.4x and substantial cash reserves of $28.0B enable operational stability
- Revenue grew 11.8% year over year to $447.57B, indicating strong demand and market position
- Free cash flow of $16.07B and operating cash flow of $19.70B provide meaningful internal funding capacity
- Balance sheet leverage appears manageable with debt-to-equity of 0.72x and positive returns on equity and assets
UNH Stock Risks: Unitedhealth Group Inc. Investment Risks
- Net income declined 16.3% YoY despite revenue growth, indicating severe profit margin compression and cost control issues
- Current ratio of 0.80x and quick ratio of 0.77x below 1.0x suggest working capital management concerns and liquidity stress
- Weak return metrics (6.0% ROE, 2.0% ROA) indicate poor capital efficiency and value creation for shareholders
- Net income fell 5.9% and diluted EPS declined 14.7%, signaling pressure on earnings quality
- Operating margin of 4.2% and net margin of 2.7% leave limited room for execution mistakes or cost inflation
- Current ratio of 0.79x and interest coverage of 4.7x indicate tighter liquidity and only moderate debt-servicing cushion
Key Metrics to Watch
- Net income and operating margin trends—critical to determine if profitability decline reverses
- Current and quick ratios—must improve above 1.0x to signal resolution of working capital issues
- Operating expenses as percentage of revenue—will reveal whether cost inflation is being controlled
- Operating margin and net margin trend
- Net income/EPS growth versus revenue growth
Unitedhealth Group Inc. (UNH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
UNH Profit Margin, ROE & Profitability Analysis
UNH vs Healthcare Sector: How Unitedhealth Group Inc. Compares
How Unitedhealth Group Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Unitedhealth Group Inc. Stock Overvalued? UNH Valuation Analysis 2026
Based on fundamental analysis, Unitedhealth Group Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Unitedhealth Group Inc. Balance Sheet: UNH Debt, Cash & Liquidity
UNH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Unitedhealth Group Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $23.86 reflects profitable operations.
UNH Revenue Growth, EPS Growth & YoY Performance
UNH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $109.6B | $6.3B | $6.85 |
| Q3 2025 | $100.8B | $2.3B | $2.59 |
| Q2 2025 | $98.9B | $2.8B | $3.02 |
| Q1 2025 | $99.8B | -$1.4B | $-1.53 |
| Q3 2024 | $92.4B | $5.8B | $6.24 |
| Q2 2024 | $92.9B | $2.8B | $3.02 |
| Q1 2024 | $91.9B | -$1.4B | $-1.53 |
| Q3 2023 | $80.9B | $5.3B | $5.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Unitedhealth Group Inc. Dividends, Buybacks & Capital Allocation
UNH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Unitedhealth Group Inc. (CIK: 0000731766)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UNH
What is the AI rating for UNH?
Unitedhealth Group Inc. (UNH) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UNH's key strengths?
Claude: Strong revenue growth of 11.8% year-over-year demonstrates solid market demand in healthcare services. Robust free cash flow generation of $8.1B and manageable debt/equity ratio of 0.69x provides financial flexibility. ChatGPT: Revenue grew 11.8% year over year to $447.57B, indicating strong demand and market position. Free cash flow of $16.07B and operating cash flow of $19.70B provide meaningful internal funding capacity.
What are the risks of investing in UNH?
Claude: Net income declined 16.3% YoY despite revenue growth, indicating severe profit margin compression and cost control issues. Current ratio of 0.80x and quick ratio of 0.77x below 1.0x suggest working capital management concerns and liquidity stress. ChatGPT: Net income fell 5.9% and diluted EPS declined 14.7%, signaling pressure on earnings quality. Operating margin of 4.2% and net margin of 2.7% leave limited room for execution mistakes or cost inflation.
What is UNH's revenue and growth?
Unitedhealth Group Inc. reported revenue of $111.7B.
Does UNH pay dividends?
Unitedhealth Group Inc. pays dividends, with $2,005.0M distributed to shareholders in the trailing twelve months.
Where can I find UNH SEC filings?
Official SEC filings for Unitedhealth Group Inc. (CIK: 0000731766) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UNH's EPS?
Unitedhealth Group Inc. has a diluted EPS of $6.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UNH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Unitedhealth Group Inc. has a B grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UNH stock overvalued or undervalued?
Valuation metrics for UNH: ROE of 6.0% (sector avg: 15%), net margin of 5.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is UNH's AI grade for 2026?
Our dual AI analysis gives Unitedhealth Group Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UNH's free cash flow?
Unitedhealth Group Inc.'s operating cash flow is $8.9B, with capital expenditures of $763.0M. FCF margin is 7.3%.
How does UNH compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 5.6% (avg: 12%), ROE 6.0% (avg: 15%), current ratio 0.80 (avg: 2).